KBRA Affirms AAA Rating for Peninsula Corridor Joint Powers Board Sales Tax Revenue Bonds
25 Jan 2024 | New York
KBRA affirms the long-term rating of AAA with a Stable Outlook for the Peninsula Corridor Joint Powers Board Sales Tax Revenue Bonds.
Key Credit Considerations
The rating was affirmed because of the following key credit considerations:
- Measure RR sales tax revenues provide ample coverage of sales tax bond maximum annual debt service and provide a substantial source of recurring financial support for capital and operations through FY 2051.
- Favorable long-term demographic trends and high income level of population are supportive of growth and stability of sales tax revenues.
- Limited potential for additional sales tax secured borrowing.
- Sales tax revenues are sensitive to economic cycles and experienced some volatility following onset of the pandemic.
- Not applicable given AAA rating level.
- A significant decline in debt service coverage due to very large increases in sales tax bond leverage accompanied by significant and prolonged deterioration in the sales tax base.
To access rating and relevant documents, click here.